There are reports the Office of the US Trade Representative might propose to levy tariffs as a result of the Trump administration’s “currency manipulation” and “illegal timber” investigations.

The associations suggest these would be a serious setback, particular as Vietnam has emerged as a “trustworthy alternative to China”.

The open letter said: “The increase in imports from Vietnam over the past several years is largely an artifact of the US application of substantial Section 301 tariffs on hundreds of billions of dollars’ worth of imports from China. This has led importers to look to Vietnam, perhaps more than any other country in Asia, as a sensible, trustworthy alternative to China. Imposing Section 301 tariffs on goods from Vietnam in either investigation would be a peculiar response to developments that are, in a sense, the hoped-for outcome of US policy. 

“In addition, imports of raw materials and industrial components are critical inputs used by US manufacturers of finished goods, and Section 301 tariffs on these products would undermine US manufacturers’ competitiveness. 

“If the US were to impose Section 301 tariffs on goods from Vietnam, the Biden-Harris administration’s efforts to strengthen alliances and partnerships across the Indo-Pacific region would suffer a serious setback.”